The History of Paychex

Paychex has a rich history of products and services that have made the process of managing a business easier over the years. Join us for a trip back in time as we explore our roots and milestones from the beginning in 1971 to the present.

1971

The Beginning

Many payroll processors were ignoring a huge potential market — the 98 percent of American businesses with fewer than 100 employees. In 1971, B. Thomas Golisano took advantage of this opportunity, and with $3,000, one employee, and 40 clients, he founded a new company in Rochester, NY called Paymaster — soon to be Paychex, to provide payroll to small- to-medium sized businesses.

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1979

Company Consolidation

Paychex quickly expanded beyond Rochester to include 18 franchises and partnerships, which in 1979 were consolidated into one privately-held company.

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1983

Headquarters Built

Just four years after consolidation, Paychex became a publicly held company and constructed a new corporate headquarters at 911 Panorama Trail South in Rochester, NY.

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1986

PGA Partnership with Jeff Sluman

Began a long and proud partnership with professional golfer Jeff Sluman, who started sporting the Paychex logo on the course in a sports marketing agreement. Jeff's 1986 season included 7 top-10 finishes in 36 PGA events.

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1987

Benefits Services Introduced

Expanded beyond payroll services for the first time, introducing its Benefits Services division.

New Product: Paylink®

Client Count

1994

NASDAQ-100

Joined the NASDAQ-100 Index®, comprised of 100 of the largest non-financial stocks listed on the NASDAQ Stock Market.

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1995

Acquisitions

Acquired two California companies — Pay-Fone and Payday.

New Service: 401(k) Recordkeeping

401(k) Recordkeeping was now offered through the Human Resource Services Division.

Client Count

Taxpay® division reached 100,000 clients.

Client Count

Paychex reached 210,000 clients.

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1996

Acquisitions

Expanded its large business portfolio and experience by acquiring Olsen Computer Systems, Inc. and National Business Solutions.

New Service: Major Market Services

Major Market Services was introduced to businesses with 50 or more employees, providing comprehensive payroll and human resource solutions for medium and large businesses across the United States.

Anniversary

Paychex celebrated its 25th anniversary.

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1997

New Business: Paychex Insurance Agency

Paychex Insurance Agency is launched. Initially offering only workers' compensation insurance, it expanded to include health & benefits and business insurance as well. Paychex Insurance Agency will eventually represent over 100,000 clients nationwide and rank among the top 30 agencies in the U.S., according to Business Insurance magazine.

1999

Brett Bodine's Sponsorship Renewed

2002

Acquisitions

Acquired Advantage Payroll Services, Inc., a privately owned payroll processor with a national network of 41 offices serving small- to mid-sized businesses throughout the U.S. The merger added more than 49,000 new clients.

Client Count

Paychex reached 390,000 clients.

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2003

AICPA and Paychex Partnership

The American Institute of Certified Public Accountants (AICPA) Business Solutions Program selected Paychex as its preferred payroll provider. This CPA partnership program helps strengthen the relationship between CPAs and their clients.

Paychex Expands

Opened new offices in Chattanooga, TN; Greenville, SC; Lexington, KY; and Wilmington, NC.

Acquisitions

Acquired the Time In A Box® product from Stromberg, a market leader in time and attendance and employee management solutions.

Client Count

Paychex reached 490,000 clients.

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2004

Thomas Golisano Retires

Paychex founder B. Thomas Golisano retired from his position as president and CEO; long-time IBM executive Jonathan J. Judge was named as his successor. Tom remained chairman of the Paychex Board of Directors.

Acquisitions

Announced the acquisition of Stromberg, a market leader in time and attendance software solutions for mid- to large-sized businesses. Stromberg's suite of labor management products includes time and attendance, employee self-serve, scheduling, and more.

Client Count

Paychex Major Market Services reached 25,000 clients.

Client Count

Paychex reached 505,000 clients.

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2005

Paychex Helps During Hurricane Katrina

Processed, printed, and mailed more than 270,000 disaster relief checks for victims of Hurricane Katrina in Louisiana. Paychex partnered with the American Red Cross and Hibernia National Bank for this six-week program.

Accounting Partnerships Expand

Launched Accountant Advisory Boards in Boston, MA; Atlanta, GA; and Orange County, CA. The new initiative expanded Paychex's long-time partnership with accounting professionals and offered a new forum to gain valuable input on ways to best meet the needs of CPAs and their clients.

AICPA Business Solutions Adds More Paychex Services

The Paychex Partner Program from AICPA Business Solutions was expanded to include not only Paychex Payroll offers, but also Paychex 401(k) Recordkeeping Services and Major Market Services offers. This program benefits CPAs by providing unique value opportunities intended to enhance their client relationships.

New Service: Paychex Premier® Human Resources

Added Paychex Premier® Human Resources to its growing suite of HR products and services. This comprehensive human resource outsourcing solution offers full payroll and HR administration services with the expert support of an on-site Human Resource Representative.

New Product: Health Savings Account

Health Savings Accounts (HSAs) were added to the Paychex product line as a tool for employers and employees to pay for current and future qualified medical expenses on a tax-free basis.

Client Count

Paychex Administrative Services reached 5,000 clients.

Client Count

Paychex reached 522,000 clients.

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2006

Lifetime Contract with PGA Golfer Jeff Sluman

Signs a lifetime sponsorship contract with six-time PGA winner Jeff Sluman while recognizing the 20th anniversary of the partnership between Paychex and the pro golfer. The partnership is one of the longest-running corporate sponsorships on the PGA Tour today.

2007

Acquisitions

PGA Partnership with Danielle Downey

Signs a two-year sponsorship agreement with professional golfer Danielle Downey.

Preferred Payroll Provider

Named a Preferred Payroll Provider for the National Association of Enrolled Agents (NAEA).

Quarterly Dividend Increases

In July, the Board of Directors declared a 43% increase in the company's regular quarterly dividend – going from $.21 per share to $.30 per share. Paychex also announced its intention to repurchase up to $1.0 billion of its common stock.

New Service: Tax Credit Services

Introduced its new Tax Credit Services, a product that provides small and medium-sized businesses across the United States with an easy and cost-effective tool, to help them identify and apply for wage-based tax credits that they may be eligible to receive.

Client Count

Paychex reached 561,000 clients..

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2009

Acquisitions

Announced the sale of Stromberg, a time and attendance company serving mid- to large-sized businesses, to Kronos Incorporated, a global leader in workforce management solutions.

New Product: Time and Labor Online

Time and attendance product expanded with the addition of Time and Labor Online, an Internet-based time and labor management system that gives businesses an easy and cost-effective way to automate time and attendance processes.

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2010

Martin Mucci Becomes President and CEO

Martin Mucci named president and chief executive officer, succeeding Jonathan J. Judge, who resigned in July 2010.

Acquisitions

Acquires SurePayroll, Inc., the nation's leading provider of online payroll processing for small businesses.

New CFO

CPA2Biz Partner Expansion

Paychex and CPA2Biz extend their long-standing strategic alliance to September 2016; Paychex is the preferred provider of payroll and retirement services for AICPA members and their clients.

New Vice Presidents

Appointed four new vice presidents: Andrew B. Childs, vice president of marketing; Laurie L. Zaucha, vice president of human resources and organizational development; Mark Bottini, senior vice president of sales; and Sanjay Hiranandani, vice president of information technology operations.

Paychex Online Mobile

Paychex expands its Software as a Service (SaaS) product offerings for clients with the launch of the Paychex Online Mobile application for the Apple® iPad®.

BuildMyBiz Launches

Paychex launches www.BuildMyBiz.com, a website to help entrepreneurs start, grow, and manage a business.

Paychex 40th Anniversary

Paychex celebrates its 40th anniversary at NASDAQ.

Paychex HR Essentials

Paychex introduces HR Essentials, a human resource offering that offers expert support over the phone or online.

Client Count

Paychex reaches 564,000 clients nationwide.

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2012

Acquisitions

Acquires Icon Time Systems, a time and attendance solution for small businesses, and ExpenseWire®, a leading expense report automation solution for small and medium-sized businesses.

Advisor Select 401(k)

New Service: Business Insurance Payment Service

Paychex introduces its Business Insurance Payment Service, which is available for business owner, commercial auto, and umbrella policies sold by Paychex Insurance Agency through The Hartford, Guard Insurance Group, and Travelers insurance companies.

Paychex Mobile

The launch of Paychex Mobile for iPhone®, Android™, and BlackBerry® provides clients powerful tools for instant management and increased productivity with access to personal payroll, benefits, and retirement information.

Client Count

2013

Acquisitions

Paychex Software-as-a-Service Platform

Paychex announces a new software-as-a-service (SaaS) platform that combines innovative technology with superior customer service to provide human resource administrators with a streamlined and integrated approach to workforce management.

Paychex Accounting Online

Health Care Reform Solutions

Paychex helps businesses owners prepare for new requirements mandated by Affordable Care Act with the launch of the Paychex Employer Shared Responsibility Service.

Client Count

Paychex reaches 570,000 clients nationwide.

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2014

Acquisitions

Paychex acquires nettime, a leading cloud-based time and attendance solutions provider.

Paychex Flex™

Paychex unveils its software-as-a-service platform and newly expanded service offering, Paychex Flex, which delivers seamless access to payroll, HR, and benefits information for a streamlined and integrated approach to workforce management. The platform offers a unique blend of customer service options and robust software driven by a simple, yet powerful user experience that spans desktop and mobile applications to drive efficiency and performance across an organization.

Paychex | IHS Small Business Jobs Index

Paychex partners with IHS, Inc., a leading global source of critical information and insight, to launch the Paychex | IHS Small Business Jobs Index, a monthly index examining the state of small business employment in the U.S.

Payment Processing Services

Paychex launches Paychex Payment Processing Services, a full suite of payment processing solutions, including credit and debit card processing, mobile and online payment services, and point-of-sale (POS) solutions, designed to meet the evolving needs of small businesses.